WHAT IS AN MTF CALCULATOR AND WHY SHOULD TRADERS USE IT?

What is an MTF Calculator and Why Should Traders Use It?

What is an MTF Calculator and Why Should Traders Use It?

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An MTF (Margin Trading Facility) Calculator is a powerful tool that helps traders determine how much margin funding they can avail to buy stocks. Margin trading allows investors to leverage their capital by borrowing funds from brokers to take larger positions than their actual investment.



Key Benefits of Using an MTF Calculator:




  • Quick Margin Estimates: Instantly know how much extra buying power you get with your investment.




  • Risk Management: Understand how much additional margin is needed to maintain a position.




  • Stock Selection: Only certain stocks are eligible for MTF. The calculator helps verify if the desired stock qualifies.




  • Interest Cost Awareness: Estimate the interest or charges you'll incur over the duration of the margin position.




Example:


If you have ₹1,00,000 and the broker allows 4x leverage, the MTF calculator will show you can buy up to ₹4,00,000 worth of approved stocks — while only paying interest on the ₹3,00,000 borrowed.


Using an MTF calculator ensures smarter, more informed trading decisions — especially when dealing with volatile stocks or planning short-term trades with higher exposure.

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